§ Mr. Humeasked the Secretary of State for Northern Ireland what is the total of financial support given to the Montefibre plant in Coleraine by Government agencies during and since the takeover of that plant by the Montefibre Company.
§ Dr. BoysonThe Government were not in a position, because of the European Community's control on state aid to the synthetic fibre industry, to provide selective financial assistance or standard capital grant in respect of the acquisition of the business or any capital expenditure since. The only financial support given to the plant relates to an extensive programme of research and development which was primarily designed to find new products for the Coleraine plant. The company had a total research and development budget of £2.265 million; the Industrial Development Board's contribution to this programme amounted to some £0.448 million. The company is now liable to repay these grants.
§ Mr. Humeasked the Secretary of State for Northern Ireland what was the total level of investment by the Montefibre Company in the Coleraine plant since it took over, excluding the purchase price and Government grants.
§ Dr. BoysonIt is estimated that the company has invested £920,000 in fixed assets since the takeover of the Coleraine plant; in addition, the Industrial Development552W Board has verified over £1.07 million of research and development expenditure. Thus, total investment by the company, excluding the purchase price, is £1.99 million which includes some £0.448 million of research and development grants, which are now repayable.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement outlining fully what investigations the Department of Economic Development made into the profitability of the Montefibre plant in Coleraine.
§ Dr. BoysonFrom its examination of the audited accounts the Industrial Development Board is aware that, despite an increased turnover, the company lost £858,000 in 1985. The Industrial Development Board has also discussed the prospects for the future with the company both at local and headquarters level and is satisfied that the company has been unable to identify a way of reversing the loss-making trend.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement outlining fully what investigations the Department of Economic Development has made into alternative uses for the Montefibre site in Coleraine.
§ Dr. BoysonThe Montefibre site is owned by the company. The Industrial Development Board in discussions with the company has offered to co-operate in an effort to ensure that the site is utilised in the most beneficial way for the community.
§ Mr. Humeasked the Secretary of State for Northern Ireland if he will make a statement outlining what assessment the Department of Economic Development has taken of the market for the fibres produced at Montefibre, Coleraine.
§ Dr. BoysonThe Industrial Development Board has not made a separate assessment of the market for the fibres produced at Montefibre Coleraine. After discussion with the Montefibre management the Industrial Development Board considers that the company has taken into accord all the relevant factors in arriving at its decision.